Bitcoin has taken a breather over the last seven days, dropping 5.3%. However, its solid rally this year hasn’t gone unnoticed. According to research conducted by crypto company Paxos, 99% of US financial services firms have injected more funds into crypto projects in 2023 than any other year.
Analysts continue to become more bullish on BTC and have predicted a good run in 2024. Senior crypto analyst at Bitwise, Ryan Rasmussen, made his prediction for the digital asset space in 2024 on his X account on Wednesday. He is optimistic that Bitcoin will close above $80,000 next year and that the adoption of stablecoins in daily transactions will surge massively.
The two main reasons making crypto enthusiasts bullish on digital currencies include the rising optimism that the US SEC (Securities and Exchange Commission) will allow a spot Bitcoin ETF (Exchange-Traded Fund) to enter the market. Secondly, many believe that the Federal Reserve will cut interest rates in 2024.
Meanwhile, the former boss of cryptocurrency exchange BitMEX, Arthur Hayes, has continued to reiterate his positive view on digital currencies via his X account. On Thursday, he called fiat money “a piece of trash” and said there was no absolute reason people shouldn’t go long on crypto.
With that said, let us explore price charts of major altcoins and Bitcoin to find out the critical resistance and support levels to watch over the coming days.
Bitcoin Price Analysis
After guarding the 20-day Exponential Moving Average (EMA) of $41,392 over the past few days, the bulls have finally given in to selling pressure from the bears and let Bitcoin slide below that key level as of this writing. The largest coin by market cap is now valued at $40,891. There is a possibility that BTC could collapse to the 50-day Simple Moving Average (SMA) of $38,189, where the buyers are expected to mount buying pressure.
If Bitcoin bounces off the 50-day SMA, we will be looking at the prospects of the coin crossing above the $44,687 major resistance to retest $48,121.
Ethereum Price Analysis
Like Bitcoin, Ethereum trades below the 20-day Exponential Moving Average ($2,201.45). As of Monday morning, the token has settled at $2,171.49. The latest drop suggests that the sellers are aggressively booking profits.
There is a bearish divergence forming on the Relative Strength Index, meaning the bullish trend is cooling down. The bears can solidify their position by dragging ETH below the 50-day Simple Moving Average of $2,051. If this happens, the second-largest digital currency by market capitalization will likely touch the $1,901.37 support. Meanwhile, if the bulls thrust ETH above $2,201.45 now, the token may surge to $3,000.29.
BNB Price Analysis
After struggling to get BNB above $260.15 earlier this week, the bulls have now lost their advantage by letting Binance Coin slide below the 20-day EMA of $241.18 to trade at $235.89 as of this writing. The current BNB’s price means the bulls have also let the 50-day SMA of $238.01 crumble. The bears are now aiming to drag the fourth-biggest coin by market valuation to the $223.47 support level, where buying activity might intensify. A rebound from that point could mean that BNB may be stuck between the $223.47-$260.15 range for longer.
XRP Price Analysis
Like BNB, XRP has dropped below moving averages to change hands for $0.6009817 at press time. The possibility of a sharp decline to $0.5695920 is now high. And if XRP reaches there and the bulls are unable to prevent a further drop, the bears will be happy to cause a dip to $0.4620061. On the positive side, If XRP crosses above the 50-day SMA ($0.6199010) and the 20-day EMA ($0.6311593), it might rally to $0.7486822 after the bulls defeat the bears at the $0.6790271 minor resistance.
Cardano Price Analysis
ADA peaked at $0.6763428 on Wednesday before reversing to $0.5684251 at the time of publishing. If the bulls don’t push Cardano above the $0.6189372 resistance now, the crypto asset could continue plummeting to hit the 20-day Exponential Moving Average of $0.5100927. Thrusting ADA above $0.6189372 makes a rally to $0.7000981 possible.
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